Artificial intelligence (AI) is anticipated to make a significant impact on the retail banking sector, such as using non-traditional data types to assign credit scores to potential borrowers, according to research and consulting firm GlobalData.
Technologies such as machine learning, predictive analytics and natural language processing are already making their mark in banking, with both front-office and back-office operations set to be transformed.
From the consumers’ perspective, NLP technologies such as chatbots are starting to allow more effortless and intuitive interactions with banks. These chatbots often employ highly advanced analytics to offer financial insights to consumers, such as warning them when they are likely to go overdrawn or recommending changes in behaviour that will allow them to save money.
GlobalData principal analyst for retail banking Daoud Fakhri said, “Consumers, especially younger ones, can lack confidence around financial matters and find it hard to manage their finances effectively. There is therefore a potentially large market for AI-based services that offer a guiding hand or can assume some of the responsibility for making appropriate decisions.”